Credit Suisse Is 'Overweight' Indian Domestic Cyclicals

The video discusses the RBI's monetary policy, highlighting its shift towards tightening despite an accommodative stance. It examines the impact of global monetary tightening on capital flows, particularly the outflows from India. The bond market's volatility and its implications for growth are analyzed, with a focus on the RBI's role in managing these challenges. Growth projections for India are optimistic, but inflation risks from rising oil prices pose a threat. The video concludes with strategies for navigating the Indian equity market, emphasizing domestic cyclicals over global cyclicals.

What is the current effective rate used by the RBI?

• Repo rate

• Reverse repo rate

• Cash reserve ratio

• Statutory liquidity ratio

What has been the trend in capital flows from India in recent months?

• Increased outflows

• Stable flows

• No significant change

• Increased inflows

What is the primary concern if government bond yields rise prematurely?

• Increased inflation

• Decreased foreign investment

• Hampered growth

• Higher unemployment

What is the expected nominal GDP growth according to the government budget?

• 9%

• 11%

• 15%

• 13%

Which sector is considered overweight in the Indian equity strategy?

• IT services

• Steel

• Consumer discretionary

• Financials

How does the government plan to manage the impact of high oil prices on inflation?

• Increase import tariffs

• Increase subsidies

• Reduce excise duties

• Implement price controls

What is the weight of petrol and diesel in the CPI basket?

• 3.0%

• 2.3%

• 4.5%

• 1.5%